The United Nations imposes tariffs on multiple countries with the aim to boost international growth and economy. These tariffs will promote fair trade and will impact business and growth of the country. The United States implemented different types of tariffs including:
● 201 tariff implementation
● 232 tariff implementation
● 301 tariff implementation
These are some common tariffs which the US implemented on 14 countries to increase their own growth.
Section 201 tariff:
According to US officials these tariffs are imposed on industrial goods including washing machines and solar panels. Beside this , these Industries cause serious harm to domestic industries of the United states of America and therefore tariffs are imposed.
Section 232 tariff:
These tariff goods are implemented on the goods that are key elements of the national Security including steel and aluminium. The US believes this can help the economy to grow and boost the domestic sector. The US believes that increasing tariffs on goods from countries will help the US to promote its own products which will increase job opportunities in the country and also will increase the economy and industrial growth in a positive way.
Section 301 tariff:
The US imposed these tariffs on countries which have unfair trade policies like China. The US increased tariffs on Chinese goods and as a result China also increased tariffs on US goods. The tariff fight between China and the US is significantly increasing with both countries engaging in trade fights and increasing tariffs on each other’s goods. Therefore, as a result, the US implemented tariffs on Chinese goods. According to the president of the US Donald Trump, this will help the US economy to grow and compete internationally. The US is now encouraging its own products so that this benefits the economy of the US.
Tariff rates and more:
The US implemented a 360 billion dollars worth tariff on Chinese goods. Therefore the rates now increased from 7 to 25%. On the other side China also increased its tariff on US goods. Beside this many companies are shifting from China so that they can protect their industry from heavy tariff taxes. Earlier nike decided to move their Chinese headquarter to Indonesia or other gulf countries so that their company doesn’t get affected by the US tariff taxes. In countries like Canada and Mexico the rates increased from 10 to 25% which is also a serious concern to both countries because it will affect their economy and industrial growth. The US also implemented tariffs on the European Union in an hope to stabilize its own company so the rates increased from 10 to 24%.
Reaction of the countries:
Many countries emphasized that the tariff policy of the US is unfair and they warned the US of the results of this tariff announcement. Many countries increased their tariff on US goods such as China. The European Union also emphasises that the tariff implementation from America is unfair and the president of the US should again think on the policy. Beside this many countries made tariff deals with America such as Pakistan and other Asian countries. Beside this, the president of US Donald Trump threatened Brazil that he will implement a 50% tariff on them. Earlier Brazil conducted a summit in which countries decided to choose other currencies instead of dollars for trading.
Impacts of tariff on US goods:
Beside this the Policy affected US too such as people who rely on Chinese goods for their industries. The US farmers who rely on Chinese goods are showing concerns on the US policy. Besides this, the US manufacturers who rely on imported goods are also getting affected by this policy. The tariffs will result in high prices for goods such as washing machine, steel and solar panel products. Many industrialists requested the president of the US to discuss the matter with them as it will ruin their work. Many warned they will shut down their work in the US and will move to other countries.
Benefits of the tariff:
Beside this the tariff will help the US economy to grow and to compete with foreign growth. This will increase the GDP growth of the country and also will generate large revenue. According to policy makers this will protect domestic industries of the US who rely on their own country’s products and also will increase job opportunities in the country. The biggest advantage of this policy is as it will generate high revenue for the US government and for the growth of the economy.
Countries effected through US policy:
Japan, South Korea, Malaysia and Kazakhstan will face tariff increases of almost 20%. South Africa and Bosnia will face a 30% tariff increase on goods. Indonesia will face a 32% tariff increase while on the other hand Bangladesh and Serbia will face a 35% tariff increase. Myanmar and Laos products will increase to almost 40% while Thailand will face tariffs of almost 37% on their products. The deadline for the implementation of this tariff policy is extended up to 1 August 2025. The deadline gives countries more time to discuss the policy and negotiate with the US on tariff goods. Many countries warned the US that it can result in further chaos but the president of the US wants to protect own domestic growth through these steps.
Conclusion:
The deadline extension gives time to countries so that they can discuss the policy with policy makers and negotiate on trade deals that benefit their economy as well. Beside this many countries already made tariff deals with the US to benefit their own economy. The US claims this policy will stabilise the economy of the US and will help the country to grow further without relying on international goods. According to analysts this policy will affect local farmers of the US as they rely on other countries’ products. There are benefits of this policy for the US too as it can generate a significant amount of revenue for the economy and will increase GDP growth.
